This website will be unavailable from Thursday, May 30, 2024 at 6:00 p.m. through Monday, June 3, 2024 at 7:00 a.m. due to data center maintenance.

                                                                                


By:  Lewis                                                        H.B. No. 3424



A BILL TO BE ENTITLED

AN ACT

relating to the qualification for appraisal and the appraisal of 
qualified restricted-use timber land.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 23.9802, Tax Code, is amended to read as 
follows:        
	Sec. 23.9802.  QUALIFICATION FOR APPRAISAL AS 
RESTRICTED-USE TIMBER LAND.  (a)  Land qualifies for appraisal as 
provided by this subchapter if the land is in an aesthetic 
management zone, critical wildlife habitat zone, or streamside 
management zone.
	(b)  Land qualifies for appraisal as provided by this 
subchapter if:         
		(1)  timber was harvested from the land in a year in 
which the land was appraised under Subchapter E; and
		(2)  the land has been regenerated for timber 
production to the degree of intensity generally accepted in the 
area for commercial timber land and with intent to produce income.
	(c)  Land ceases to qualify for appraisal under Subsection 
(b) on the [10th] 5th anniversary of the date the timber was 
harvested under Subsection (b)(1).  This subsection does not 
disqualify the land from qualifying for appraisal under this 
section in a tax year following that anniversary based on the 
circumstances existing in that subsequent tax year.
	(d)  A maximum of 1000 acres, within a county, owned by or 
controlled by any one person, legal or natural, may qualify for 
appraisal under Subsection (b) in any tax year.  A person, legal or 
natural, related to the person qualifying for appraisal under 
Subsection (b) may not qualify for appraisal under Subsection (b) 
in the same tax year for a parcel of land under common control.  For 
purposes of this Subsection, "person related to" has the meaning as 
provided in Section 9.102(63)(A) and (D) and Section 9.102(64) of 
the Texas Business & Commerce Code.  Real property owned by any 
person, not an individual, shall be deemed to be owned by the 
person, legal or natural, who controls such person.
	SECTION 2.  Section 23.9803, Tax Code, is amended to read as 
follows:        
	Sec. 23.9803.  APPRAISAL OF QUALIFIED RESTRICTED-USE TIMBER 
LAND.  (a)  Except as provided by Subsection (b), the appraised 
value of qualified restricted-use timber land is [one-half] 
three-fourths of the appraised value of the land as determined 
under Section 23.73(a).
	(b)  The appraised value determined under Subsection (a) may 
not exceed the lesser of:
		(1)  the market value of the land as determined by other 
appraisal methods; or
		(2)  the appraised value of the land for the year 
preceding the first year of appraisal under this subchapter.
	(c)  The chief appraiser shall determine the market value of 
qualified restricted-use timber land and shall record both the 
market value and the appraised value in the appraisal records.
	SECTION 3.  (a)  This act takes effect January 1, 2004.                        
	(b)  The change in law made by this Act applies only to the 
appraisal of qualified timber land for ad valorem tax purposes for a 
tax year that begins on or after the effective date of this Act.  The 
appraisal of qualified timber land for ad valorem tax purposes for a 
tax year that began before the effective date of this Act is 
governed by the law in effect when the appraisal of the land was 
made, and the former law is continued in effect for that purpose.